What exactly do you need to talk about… but hey i’m here lol
Answer:
E) 4.96%
Explanation:
The computation of the APR could be determined by applying the RATE formula i.e. shown below:
Given that
PMT = $402.18
Present value = $25,000
NPER = 6 × 12 = 72
FUture value = $0
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
After applying the above formula, the annual percentage rate of the loan is
= 0.4135% × 12
= 4.96%
hence, the correct option is E.
From the above information, it is true that the company is running a budget deficit.
<h3>What is budgeting?</h3>
Budgeting is the process of planning for an allocating resources efficiently and effectively.
A budget deficit is when the expended amount is above the budgeted figure.
Learn more about budgeting:
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Answer: a. Increase in financing activities for the issuance and a decrease in financing activities for the dividends.
Explanation:
When using the Indirect method of the Cash Flow Statement, you will find 3 sections namely, the Operating Activities, Investing Activities and Financing Activities.
The Operating Activities deal with the normal business Transactions and related entries that keep the business running.
Investing Activities have to do with entries related to Non Current Assets as well as stocks and bonds in other companies.
The above relates to the Financing Section that handles the raising of Capital needed to run the business. They include long term debt and Equity.
When new Equity is announced it is a Cash inflow for the business meaning that there will be an INCREASE in Financing Activities.
Dividends have the effect of reducing Equity so it is a Cash Outflow. This means that there will be a DECREASE in Financing Activities as a result of the declared Dividends.